As reported by our colleagues at the New York State Restaurant Association, the current Wage Board, convened to examine the state of the tip credit under New York law, today voted on, but ultimately rejected, a motion to eliminate the tip credit entirely. Tip credits under federal and state wage laws permit an employer to pay less than the full statutory minimum wage where an employee receives sufficient tips and other conditions are met. Many fear that elimination or significant reduction of the tip credit will force drastic and unintended responses from small business owners, such as reduction in non-tipped employee wages, and/or replacement of tipping with administrative fees collected and controlled by the establishment. Should such a measure ultimately be adopted, New York would join several other states with no tip credit. The Wage Board’s deliberations are ongoing.